Over the last few years or so, cryptocurrency has become a very popular investment asset for investors. Though cryptocurrencies are volatile, many investors find it very appealing to jump into the crypto bandwagon. Some of the popular crypto coins are Bitcoin, Ethereum, Dogecoin, etc. and there are many exchanges available where you can buy, sell or trade crypto coins.
Crypto trading is different from conventional stock trading and unlike stock exchanges, the crypto trading market/platform remains open 24*7. Moreover, Stock markets are regulated exchanges while the cryptocurrency market is self-regulated. Another key aspect of the crypto trade is, the price of coins changes every minute. So, the pricing of crypto coins doesn’t depend only on trading.
What Is Cryptocurrency Trading?
A cryptocurrency is a type of digital currency which is a form of payment that can circulate without the need for a central monetary authority like the government. On the other hand, cryptocurrency trading is a process that involves buying and selling various crypto coins via an exchange. Crypto trading also involves speculating on price movements via a CFD trading account. Cryptocurrency trading can be done in 2 ways –
1. CFD Trading on Cryptocurrencies
2. Buying and Selling Cryptocurrencies via an Exchange
1. CFD Trading On Cryptocurrencies
CFDs trading are derivatives and it allows the traders to speculate on cryptocurrency price movements without taking ownership of the underlying coins. Here you can go long (buy) if you think the price of the coin will increase or you can go short (sell) if the price decreases. To do CFD trading, you only need to put up a small deposit known as a margin. It will give you full exposure to the underlying market.
2. Buying And Selling Cryptocurrencies Via An Exchange
You can also trade cryptocurrencies via an exchange. When you buy cryptocurrency using an exchange, you purchase the coins. Here, you have to create an exchange account as well as put up the full value of the asset to open a position. Then you have to store the coins in your own crypto wallet until you’re ready to sell.
How Does Cryptocurrency Market Work?
We, know that cryptocurrency markets are decentralized, so it means these markets aren’t issued or backed by a central authority such as a government. Instead, cryptocurrency markets run across a network of computers. Unlike many currencies, cryptocurrencies exist only as a shared digital record of ownership and they are stored in a blockchain. So, when you want to send cryptocurrency units to another user, you send them to that user’s digital wallet. The transaction process will be completed once the transaction has been verified and added to the blockchain through a process called mining.
Comparison Of Best Cryptocurrency Exchanges
|Company||Fees||Currencies||Security||Transactions Supported||Trade & Transfer Limits|
|Coinbase||0.04% to 0.50% (taker fee) or 0% to 0.50% (maker fee)||123||Integrated Online Cryptocurrency Wallet||Market, Limit, Stop||No max|
|Cash App||Vary||1||Integrated Online Cryptocurrency Wallet||Market||Weekly send/receive limit $7,500|
|Binance||0.015% to 0.1%||50+||Integrated Online Cryptocurrency Wallet||Market, Limit, Stop Limit||Varies by currency|
|Bisq||0.05% to 0.70%||45 (18 cryptocurrencies + fiat)||Open Source and Decentralized Exchange||Market||Varies|
Crypto Markets Trading Hours
Crypto markets remain open 24 hours a day, seven days a week. However, the levels of liquidity on the market can vary depending on the time of day. So, if you are trying to assess market movements then you might find it a bit difficult. In stock traders, traders usually compare the current share price with its position at the close of trading the day. But this is not the case for crypto trading. Crypto traders check the last 24-hour price trend to evaluate the market condition. As the crypto market doesn’t close, there is no start and close price of the cryptocurrencies. The information you will get is the price of the coin at 00:00 hours and another at 23:59 hours. Moreover, the cryptocurrency market operates at weekends, therefore, any price chart will look smoother. So, there will be sudden falls and rises in the price of crypto coins.
FAQs About Does Crypto Trade 24*7 Or Does Crypto Market Close?
What Are The Best Crypto Trading Hours?
The best time to trade cryptocurrencies is from 09:30 to 10:30. In this time frame, you will see the most volatility in the crypto market. So, there would be lots of potentials to make money during that time. On the other hand, Charles Edwards founder of Capriole Investments, did some research about the best time for crypto trading and he found that there was a higher return for trades made on Sunday night to Monday morning!
Can You Trade Crypto Coins On The Weekend?
Yes, you can trade crypto coins on weekends. This is because the cryptocurrency market never closes and you can trade 24*7.
Can You Buy Stocks After Trading Hours?
Yes, you can buy stocks after trading hours via Electronic Communications Networks.
Does Crypto Have A Closing Time?
The cryptocurrency market or cryptocurrency exchanges operate 24 hours a day, seven days a week. It means there is no closing time available for crypto markets.
What Time Zone Does Cryptocurrency Use?
Cryptocurrency uses the UTC Time zone. Crypto exchanges use a standardized time to make things simple for traders around the world because traders trade from different time zone.
Can You Sell Crypto When The Market Is Closed?
You can sell the cryptocurrency any time you want. The crypto market never closes so there is nothing to worry about selling your crypto coins.
References: 1 https://www.finder.com/crypto-markets-trading-hours-converter
References: 2 https://www.businessinsider.com/personal-finance/day-trading-crypto#:~:text=The%20crypto%20markets%20are%20open,a.m.%20to%204%20p.m.%20ET.
Last Updated on August 6, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.